California fast-food workers will get $20 minimum wage, starting Monday

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California fast-food workers will get $20 minimum wage, starting Monday
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Debate is hot about the impact of a higher minimum wage. Half a million Californians work in fast-food, where wages had stagnated for decades. Restaurant owners warn of higher prices and fewer hours.

California fast-food workers cooking Big Macs or whipping Frappuccinos willThe new state minimum uniquely focuses on a particular segment, fast food, affecting some of the country's biggest chains, including McDonald's, Starbucks, Subway and Pizza Hut.are estimated to work in fast food here, mostly women, immigrants and people of color. Many live below the poverty line.Sandra Jauregui from Sacramento is counting down the days to her first bigger paycheck in two weeks.

California's pay hike is a result of a contentious deal struck by labor leaders, including the large Service Employees International Union, and fast-food companies last year.Several fast-food executives have suggested prices would go up 2.5% to 3.5% to offset higher wages; Jack in the Box, Starbucks, McDonald's and Chipotle have all warned of upcoming price hikes. That's on top of price increases many restaurants have been rolling out for months.

"I am used to being a champion of labor and I'm in this odd position," says Michaela Mendelsohn, a longtime advocate for LGBT workers and also owner of six El Pollo Loco restaurants with about 170 employees. warnings have left many workers with mixed feelings about the raise, despite the potential for extra spending power.

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